TOP TIPS – BUSINESS PLANNING ANDFUNDING APPLICATIONS

ARTS NSW

BUSINESS PLANNING

“The more uncertain and shifting the environment becomes the more important it is for arts organisations to have a clear sense of purpose: to think and act strategically… That does not mean detailed and inflexible long-term plans. Nor should it be a licence for navel gazing… An organisation that lacks an animating sense of purpose risks being pushed and pulled in many directions…

Arts organisations operate in increasingly crowded and competitive markets, with multiple partners, with different goals and performance measures, mixing commerce and cultural creativity. In such a fluid environment, stability does not come from structure but from having an enduring sense of purpose.”1

1Arts organisations in the 21st century: ten challenges; Charles Leadbeater, Arts Council of England 2005

Core components

Purpose (or Mission) (1/2 page) Executive Summary (less than 1 page) Context (3-4 pages) Goals and KPI’s (Key Performance Indicators) (1-2 pages) Strategies (2 pages including Goals/Strategy Matrix) Artistic Plan /Program Plan (3 pages) Marketing Plan (2-3 pages) Financial Plan (1-2 pages) Management Plan (2-3 pages): Organisational Structure,

Governance, Succession Plan, Risk Management

Purpose (or Mission)

Your purpose must answer the question: why does our organisation exist?

It should be inspiring It should guide your organisation and set boundaries to

minimise “mission drift”

Executive Summary

The executive summary should be less than one page and cover the key messages of your plan.

It is generally the last thing you write and should encapsulate and distil the strategic direction of the document i.e.

where you want to go (your artistic rationale) the context you are in where you eventually want to get how you aim to get there how far down the track you hope to be in 3 years time

Context

This section will summarise the strategic issues facing the organisation having assessed the internal and external environment to identify the organisation’s strengths and weaknesses, opportunities and challenges

Are there any other external (artistic, political, economic, social, technological) issues which you need to take into consideration?

What are the issues that underpin your artistic rationale and choices?

Context - History

This should be a brief overview summarising

• when your organisation was set up• for what reason• the impact of significant achievements, events and

milestones that your organisation instigated or reacted to over the years - events which are influencing your strategic direction

Context - Internal situation

This should be a short but comprehensive evaluation of your organisation

It should highlight strengths while acknowledging weaknesses

Context - External situation

This may be one to two paragraphs on your external situation as it is now

Consider who are your local, national and international peers against whom you benchmark your organisation?

Who are your stakeholders?

Context - Markets 1

A market is any broad collection of people who might have an interest in exchanging something, coming into contact or engaging with your organisation

These may include artists, visitors, ticket buyers, workshop participants, clients, referrals, members, volunteers, funding bodies, sponsors and philanthropists

For each market segment your analysis should identify what the segment wants from the organisation (needs met and benefits) and what the organisation can offer each segment to meet those needs

Context - Markets 2

Define your current markets This should be based on any research or facts.

Describe your market segments in terms of the key common factors that bind each group (e.g. young adults who respond to the latest trends in new media).

Consider who creates your support base? What other markets are strategically important to you? If you have segmented your markets, include a summary of your analysis

Clarify what you offer your markets

Context - Competition

In not-for-profit arts organisations, competition can be thought of as anything that inhibits or stops an organisation from achieving its goals

What are the competitors for each market segment? What is the competitor’s offer or services, and what is the impact on the organisation and how will the organisation respond?

Consider who, or what else, competes for your markets’ time, attention, interest and money

Goals

Goals should describe the impact you want (where you want to be). Clearly articulated and measurable goal statements will make it easier to establish priorities and KPI’s within your plan

A good way to think of goals is to express them starting with “be” or “have”

Your plan will usually have no more than six goals and each should consist of one specific, clear and tangible objective

Goals should be "SMARTER“

Key Performance Indicators

If you measure it, it will happen. If it's important, you can almost always find a way to measure it

KPI’s demonstrate how well your organisation is progressing towards achieving its Goals: both measuring success and operating as warning signals.

Each goal can have one KPI or more

Sample goal and KPI with targets

GOAL KPI Current

Situation Yr 2 Yr 3

3 case studies

Biennial audience survey demonstrating 80% of participants have increased understanding

20% $160K $160K Increase fundraising income from philanthropy

and giving program $10k $15k $35k $50k

80%

HAVE Diversified income streams to ensure financial sustainability

Increase earned income from 20% to 25% of total income by 3rd year

20% 22% 25%Circulation grows by 10% each year 5k 5.5k 6k 6.7k

Generate at least a 2% surplus each year $16k $16.5k $17.3k $18k

53k

200% increase in number of high school group by Year 3

2 4 8 10

HAVE More people experience and, understand the value of contemporary art

Increase attendances by 10% each year 40k 44k 48k

60% 70%

ANNUAL TARGETS

Yr 1BE Nationally recognised exhibitions of innovative visual art & interdisciplinary art forms

12 exhibitions per year 12 12 12 12

Critical discourse generated in national and industry media, (minimum 3 case studies per year)

1 feature on ABC

4 case studies

6 case studies

Strategies

Strategies are the 10 or so major initiatives you will undertake to achieve your goals

Include the key activities that will enable your organisation to implement each strategy

Strategies - suggested format

Strategy Key Activities Priority ResponsibilityPresent 12 exhibitions per annum with an emphasis on the development and presentation of new work See Artistic Plan 1 Curator

Produce exhibition catalogues of a high quality per annum, three full colour, bound, minimum 48 page, publications published 2

Publications Manager with support from Designer and Curator

Produce one artist monograph per annum 3

Curator with support from Designer and Publications Manager

Produce one theoretical text every two years 3

Curator with support from Designer and Publications Manager

Produce and distribute high

quality publications

Artistic Program/Plan

Your artistic (or program) plan contains three main components:

· a statement about the artistic rationale which underpins your artistic choices

· an overview of the program for each year of the business plan (exhibitions, tours, special projects, residencies, performances, creative developments, workshops, commissions, publications etc)

· ways to measure artistic vibrancy, including a model for self-evaluation.

Marketing Plan

Provide a multi-year plan of the marketing goals and strategies that you intend to use to achieve your KPIs.

Your marketing plan should demonstrate:

· an understanding of target markets (current and potential);

· the responsiveness of programming to target markets and segments; and

· evidence of market research.

If applicable, you may need to develop separate action plans for marketing communications or promotion, sponsorship and philanthropy.

Financial Plan

The financial plan provides further details of how you are going to implement your financial strategies that underpin your artistic vision. It should include:

· an assessment of your organisation's current financial situation (where are we now)

· a set of financial goals, complete with strategies and KPIs (how do we get there)

· a vision of the financial situation at the end of the period covered by the business plan (where do we want to be)

You should provide a financial forecast for each year covered by the business plan.

Management Plan

Organisational Structure Role of the Board (where applicable) and

Governance Succession Plan Risk Management Plan Any ancillary plans - including disability, equal

employment opportunities, cultural diversity and indigenous participation and access.

ARTS NSW – arts funding program

NSW Government’s arts policy and funding body

Role of Arts NSW:• funding NSW artists and arts & cultural

organisations• promoting arts and culture• providing advice to the sector and

government• working with NSW cultural institutions• managing property

ARTS NSW

Ministry of Tourism, Major Events and Arts

Minister: The Hon. George Souris, Minister for Tourism, Major Events,Hospitality & Racing, Minister for the Arts

Director General: Mark Paterson AO, Department of Trade & Investment,Regional Infrastructure & Services

Ministry of Tourism, Major Events and Arts Arts NSW Destination NSW Art Gallery of NSW Australian Museum Sydney Opera House Powerhouse Museum Screen NSW State Library OLGR (Office of Liquor, Gaming and Racing) CLAGCA (Casino, Liquor and Gaming Control Authority).

ARTS NSW

ARTS FUNDING PROGRAM

Funding to support NSW artists and arts and cultural organisations

Funding is available: for organisations and individuals for all artforms across all of NSW

Competitive application-based process 2012 AFP is for activity taking place between

January -December 2012.

ARTS NSW

POLICY DIRECTIONS

The Arts Funding Program seeks to promote:

• A creative and diverse arts and cultural sector

• Improved industry capacity & sustainability

• Increased access to arts and cultural activities

• Audience development and participation

ARTS NSW

TYPES OF FUNDING

There are 4 main types of funding:

•Program Funding

•Project Funding

•ConnectEd Arts - Residencies

•Fellowships, Scholarships and

Awards

ARTS NSW

PROGRAM FUNDING

•Annual Program Funding

•Triennial Program Funding

•Negotiated Program Funding

PROJECT FUNDING

•Capital

•Creation and/or Presentation

•Performing Arts Touring

•Strategic Industry Development

•ConnectEd Arts

•Quick Response

•Regional Conservatorium

•Screen Audience Development

ABORIGINAL ARTS AND CULTURAL STRATEGY

Aims to improve support for NSW Aboriginal artists and arts organisations

Applications for funding with an Aboriginal arts and cultural focus must

meet the objectives of the strategy:

Direction 1: Artists

Direction 2: Visibility

Direction 3: Community

Direction 4: Jobs

Brook Andrew, Biennale of Sydney

N.B. NSW Aboriginal arts and culture is a priority under Strategic Industry Development.

APPLICATION FORMS

Available 6 weeks before the relevant closing date.

There is a separate form for each type of funding.

Delivery plans are a key part of many of the forms.

Forms are available as interactive PDFs. (MAC users

remember to download Adobe Reader)

Many are also available on our new online

application system: http://apply.arts.nsw.gov.au

ASSESSMENT PROCESS

1. Applications submitted

2. Applications sent to assessment panel

3. Individual scoring by panel

4. Final scoring and funding recommendations

5. Recommendations go to Minister for approval

6. Applicants receive advice

ASSESSMENT CRITERIA

All applications are assessed against 5 criteria:

1. Merit

2. Audience development & participation

3. Benefits

4. Capacity

5. Budget

Each criteria is equally weighted.

Assessment panels

Who assesses your application?

Funding applications are assessed by a panel consisting of independent peers with appropriate industry expertise

Peers are people with a professional association with the arts or a specific artform who have the knowledge and/or experience to make a fair and informed assessment of a funding application

Applications are not assessed by artform

ROLE OF ARTS NSW STAFF

Providing advice to potential applicants on:

• interpreting the guidelines

• types of activities relevant to each

category

Providing advice to assessment panels

WRITING APPLICATIONS

Never assume an assessment panel knows you or your work

Always use plain English

Give as much detail as possible

Provide appropriate support material

Test the online application form before you start

Check the closing date

Talk to the funding staff

Make sure you apply!

BUDGETS

Ensure your budget is correct and reflects the activity

Ensure your budget is realistic

Show funding from other sources

Payment of fees and salaries to artists and employees should be

consistent with industry standards

Budgets should be commensurate with the type and scale of the

program

Give as much detail as possible – don’t use ‘other’ as a descriptor

Provide explanatory notes to the budget

FOR MORE INFORMATION

Website – www.arts.nsw.gov.au• Guidelines and application forms• Aboriginal Arts and Cultural Strategy• Aboriginal Arts and Cultural Protocols• Glossary and Explanatory Notes• Check the Arts NSW website for FAQs and

latest news •  List of past grant recipients• Sample delivery plans

Arts NSW staff – 02 9228 5533 arts.funding@arts.nsw.gov.au

More details

Grainne Brunsdon, Manager Arts Funding grainne.brunsdon@arts.nsw.gov.au 9228 4743

Gabrielle Eade, Senior Contracts Officer gabrielle.eade@arts.nsw.gov.au 9228 5430